Ontario gas tax cut extension to cost half-a-billion over 6 months [Video]

The Ford government is set to spend half a billion dollars to extend the provincial gas tax cut for another six months, according to the Ministry of Finance, putting the total cost of the affordability measure at $3.2 billion.

The gas tax cut was first implemented in 2022 as a way to counter the effects of the federal price on carbon, commonly known as the carbon tax, which pushes up the price at the pumps every year.

While the measure was initially sold as temporary relief, the Ford government has extended it four times, capping the provincial portion of the tax at nine cents per litre which, the government said, has saved Ontario households $320 on average.

The meagre savings — less than $130 per year for households on average — have raised questions about whether the gas tax cut is worth the costly price tag.

“Whenever you reduce revenue, whether that …